Marketwide

Marketwide is an adjective used to describe phenomena, actions, or measures that apply to the entire market rather than to individual firms or segments. It contrasts with firm-specific or sector-specific phenomena, which affect only particular companies or industries.

In finance, a marketwide event or risk affects a broad range of assets and participants. Marketwide conditions are often observed in movements of major indices, widespread changes in liquidity, or synchronized price movements across equities, bonds, and derivatives. Systemic risk, sometimes described as marketwide risk, refers to risks that threaten the stability of the financial system as a whole and are difficult to diversify away.

Marketwide measures or policies are those implemented to influence conditions across the market. Examples include monetary policy actions by central banks, macroprudential regulation, and liquidity facilities that operate marketwide. Trading safeguards such as marketwide circuit breakers suspend or halt trading across an exchange to prevent panic from spreading.

In analysis and reporting, marketwide data refers to indicators that summarize broad market performance, such as broad index levels, market breadth measures, and liquidity metrics. Researchers compare marketwide trends to firm-specific results to assess systemic influences or to isolate idiosyncratic factors.

Limitations: the term marketwide is broad and context-dependent; its precise meaning relies on the scope of the market under consideration (stocks, bonds, derivatives, or a broader financial system) and the policy environment.